Pepsi Case

Post on 31-Oct-2014

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Peresentation about Pepsi Marketing Strategies

Transcript of Pepsi Case

Presented by: 070100042 Erman Demir Anıl Altınata

History

• 1898: Pepsi founded

1923: Pepsi-Cola declares Bankruptcy

• 1923: Roy C. Megargel buys Pepsi and Pepsi-Cola Corporation formed

• 1934: Pepsi begins selling 12oz bottles for 5 cents

History

• 1946: WWII sugar rationing

Pepsi buys a sugar plantation in Cuba• 1950: Alfred Steele becomes CEO Joan

Crawford promotes Pepsi brand• 1956: 149 Bottling Plants in 62 countries • 1962: Pepsi’s sixth new logo “Pepsi

Generation”

History

• 1964: Diet Pepsi introduced• 1964: Pepsi acquires Mountain Dew• 1967: Advertising campaign is• “Come alive, you’re in the Pepsi

Generation”• 1975: The Pepsi Challenge

History

• 1984: Lemon Lime and Mandarin Orange Slice

2002: Pepsi Blue introduced

Current Position

Pepsi Co. is the second largest food and beverage company in the world

It manufactures markets and sells a variety of salty,sweet and grain-based snacks

Currrent Position

In 2006, company’s volume grew by %5.5 compared with 2005

In 2009 company has it

revenue up to 43.2

billion US $

Net Revenue (Comparative)

13,591 13,796 13,219

5,000

7,000

9,000

11,000

13,000

15,000

2007 2008 2009

Strengths

• Company Image• Quality Conscious• Good Relation with Franchise• Market Share• Large No. of diversity businesses• Sponsorships

Strength

First mover advantageCelebrities Available budget• Sponsorships

Weaknesses

• Decline in taste• Political Franchises• Short term Approach• Weak Distribution• Low Consumer Knowledge• Lack of Soft Drink• Financial Downfall

Weaknesses

There are some website issues.

Privacy problems exist such as when people try to submit new their plans, it is linked with some other partipicants personal info.

Weaknesses

There have been reports of an third party illegal service, represented by someone called "Mr. Magic," gathers votes for ideas in exchange for cash or a share of the Refresh Project winnings for partipicants . It is reported by the New York Times .

Opportunities

• Increase Population

• Changing Social Trend

• Diversification

• Distribution of Snack Foods

Threats

• Imitators

• Government Regulation

• Non-Carbonated and other

Competitor’s Substitutes

• Corporation’s Shortage Problem

• Threat of Labor Strikes

 

Product

• Beverage Products - Diet Pepsi, Gatorade Mountain Dew, Thirst Quencher, Tropicana, Aquafina Bottled Water, Sierra Mist.

• Savory Food Snacks - Fritos Corn chips, Cheetos, Ruffles Potato Chips, Lays Potato Chips, Tostitos, Doritos.

Product

• Other Food Products - breakfast cereals, cakes and cake mixes.

• PepsiCo recently created Baked Snacks North America Business Unit to meet consumer’s interest in more nutritious snacks and foods.

Place

• Expenses related to transportation, ingredients and labor continue to pressure the beverage industry toward price increases.

• PepsiCo’s drink pricing strategies may be heavily influenced by its working relationship with Wal-Mart whose low price themes put pressure on PepsiCo to hold down prices.

Place

• In addition the company plans on major capital initiatives in Brazil and Mexico.

• The company is also acquiring Russia’s leading Juice Company, Lebedyansky, and V Water located in the United Kingdom.

 

Promotion

• PepsiCo instituted a so called Pepsi Stuff promotion whereby customers could accumulate Pepsi Points from buying various products these points could be used to by other products, most recently

• A recent promotion involving the NY Yankees was not well received when not enough free tickets were made available.

Promotion

• In 2008 PepsiCo employed Tiger Woods to promote a Gatorade brand called Gatorade Tiger.

• PepsiCo continues is promotional association with the NFL and the Super Bowl specifically marketing Pepsi and Doritos.

Promotion

• In 2009 Pepsi launched its “Pepsi Throwback” campaigned offering a drink with the sugar content of its original product.

Recommendations

• Awareness of the project can be increased by by integrating mass media into the current marketing mix .

• There should be a connection with the project and the actual purchase of the product . Right now, the campaign isnt encouraging enough to make consmuers buy Pepsi instead of Cola .

Recommendations

• Safety issues about the website and selection of the ideas need to be resolved .

Questions

1. Consider Pepsi Co’s advertising through its history .Identify as many commanilities as possible across its various and campaigns consistent with Pepsi Co’s brand image?

Questions

2. List all the promotional mix elements used in the Pepsi Refresh campaign.What grade would you give PepsiCo on integrating these elements into an integration marketing communications campaign?

Questions

3.Describe PepsiCo’s target audience.Is the

Pepsi Refresh campaign consistent with that

audience?

4.As completely as possible,analyze the campaign according to he steps listed in the chapter for developing effective marketing communication?

Questions

5. Will the Pepsi refresh campaign b succesful? Why or why not?

Thanks...